Natural Gas remains weak, speculators cut bullish bets

FXStreet (Mumbai) - Natural Gas continues to hover near 11-month lows as the prices fail to rebound on bargain hunting demand.

Natural Gas for the December delivery is trading at USD 3.641/mmbtu, after having failed to capitalize on the gains during the European session. Moreover, a record high production and warm weather have kept the bulls at bay. Temperatures will be above normal across most of the lower 48 states over the next five days before readings in the East drop to seasonal or lower levels, according to the Commodity Weather Group LLC.

As per the U.S. Commodity Futures Trading Commission (CFTC) data, Hedge funds cut bullish bets by 51 % in the week ended Oct. 21 to the lowest level since April 2012. Net-long positions on four U.S. natural gas contracts declined by 35,257 futures.

Natural Gas Technical levels

Natural Gas has an immediate resistance at 3.7, above which prices can rise to 3.83 levels. On the other hand, prices may fall to 3.5 levels if the immediate support of 3.623 is breached.

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